Business or Franchise Financing - using retirement funds
There are organizations that provide innovative methods of investment through the use of retirement funds. These are lender-providers of business and self-directed funding solutions. Through the use of a 401(k) financing plan, a buyer can use IRA or 401(k) funds to purchase a new or existing business or franchise without taking a taxable distribution or incurring penalties.
401(k) financing plans have been developed over the years by teams of attorneys who specialize in tax and ERISA law as well as professionals in the field of business and finance. Retirement funds can be used in conjunction with other lending and permits entrepreneurs to transform their business' success into a powerful tool for tax-deferred retirement growth.
How it works
They effort to ensure that the funding process of your business or franchise is as simple and beneficial as possible using these four steps. There are no unnecessary forms to fill out and no loan applications for approval. By retaining a company who specializes in 401(k) financing plans, you will be able to redirect your retirement funds into your new or existing business in as little as three weeks for less. Their trained staff will walk you through the process and keep you well informed each step of the way!
- Step 1 - Form a Corporation
- Establishment of a C-corporation on your behalf.
- Step 2 - Corporation Sponsors a 401(k) Plan
- A unique 401(k) plan has been designed to allow for investment into your corporation. The 401(k) plan comes complete with a favorable determination letter from the IRS
- Step 3 - Roll Over to New 401(k) Plan
- They will help you through the process of moving your retirement funds from your previous employer or IRA into the new 401(k) Plan.
- Step 4 - 401(k) Invests in New Corporation
- Your new 401(k) Plan purchases stock in the new corporation. This 401(k) Plan now holds stock in the corporation and the business is debt-free and cash-rich from sale of the stock. At this point, the corporation will now be able to purchase your new business or franchise.
If you are interested in learning more about the services Guidant Financial has to offer, please make sure to check "yes" on the "Get Started Today" form.